Like Tree8Likes
  • 1 Post By Beanieskis
  • 1 Post By MsYram
  • 1 Post By chuckster007

Contract Terminated by Employer but no mention of Severance Payment

Closed Thread
  1. #1

    Join Date
    May 2012
    Posts
    68

    Contract Terminated by Employer but no mention of Severance Payment

    I've been working for a startup company for 2 years and 7 months now. Last July 15, my boss told me they couldn't pay my salary anymore becuase COVID-19 third wave is affecting our business. I'm serving 1 month notice and my last day is August 15.

    He told me they will pay my remaining annual leaves but that's it. No mention of any severance payment. However, upon searching the labour dept website, I found out that I am entitled to severance payment because I've been employed on a continuous contract for more than 24 months. I also understand that should my employer pay me the severance payment they could just withdraw it from the Employer Portion of my MPF account.

    Questions:

    Is my understanding correct that I am entitled to Severance payment?

    Should I confront my boss about this? Honestly, I feel awkward to do this since the founders already took salary cuts the past 6 months (according to him) and now they had to layoff everyone except for the founders. I know they are running out of cash so most likely they will offset it from my MPF account.

    Should I just apply for MPF withdrawal myself? I read that employees can do this in case the employers didn't pay them the entitled amount. However, I would still need to talk to my boss about this since I would need supporting documents to prove my termination due to being laid off.

    Or should I just let it go and keep my MPF intact? I already got a new offer from another company anyway. It just feels not right that my boss didn't tell me that I have this option.

    Note: I am not in "need" of cash, but additional emergency fund would provide me a peace of mind especially that I will be working for yet another startup.


  2. #2

    Join Date
    Jan 2010
    Posts
    6,466
    I'm serving 1 month notice and my last day is August 15.
    If you have served notice then you have quit your employment and are not entitled to severance pay.

  3. #3

    Join Date
    Feb 2009
    Location
    Hong Kong
    Posts
    2,561
    Quote Originally Posted by mrgoodkat:
    If you have served notice then you have quit your employment and are not entitled to severance pay.
    I assume the month notice was given by employer to employee.
    MsYram likes this.

  4. #4

    Join Date
    May 2012
    Posts
    68

    Sorry for the confusion. It is my employer who gave the 1 month notice.

    mrgoodkat likes this.

  5. #5

    Join Date
    Feb 2005
    Location
    Manchester, UK
    Posts
    7,825

    The below is what you are entitled to:

    Monthly-paid employee (last month wages* X 2/3)# X reckon-able years of service

    # The sum should not exceed 2/3 of $22,500 (i.e. $15,000).

    MsYram likes this.

  6. #6

    Join Date
    May 2012
    Posts
    68
    Original Post Deleted
    I see. Got it.

  7. #7

    Join Date
    May 2012
    Posts
    68
    Quote Originally Posted by chuckster007:
    The below is what you are entitled to:

    Monthly-paid employee (last month wages* X 2/3)# X reckon-able years of service

    # The sum should not exceed 2/3 of $22,500 (i.e. $15,000).
    Thanks for this one. So for 24 months service, that would be $15,000 (maximum) x 2 = $30,000?